Polkadot Price Pullback Necessary Ahead Of Ascent To $50 Triggered By Parachains Launch
- Polkadot releases a new network upgrade, setting the ground for the much-awaited Parachains.
- DOT needs to drop in the region between $25 and $30 to attract more buyers, a move that would see it reach $50.
Polkadot trades amidst reduced volatility despite the launch of v0.9.11. The new upgrade integrates features that lay the framework for the launch of the much-anticipated Parachains. Meanwhile, the token, often considered the money maker by institutional investors, trades around $35. Movement north has been limited by resistance at $38, while on the downside, buyers firmly hold $30.
Polkadot Network Upgrades To v0.9.11
According to communication via Twitter, Polkadot made history “when a runtime upgrade was created and voted on, and deployed within 8 hours.” The developers said that the new version “contains a new feature which allows an offset to be configured to the release, enabling better control of when a lease period starts.”
In addition to that, v0.9.11 incorporates pallets that will be required when launching Parachains on Polkadot. However, the process is still in the development stage. Note that user-facing functions are yet to be deployed to ensure that Polkadot is ready for the next phase of the launch.
Polkadot May Drop To Collect Volatility
As mentioned, Polkadot is trading in thin volatility, providing few trading opportunities. The supply zone around $38 and marked in red changes the technical perspective to bearish. This explains the downward building force on DOT and the possibility of the price being pushed to lower levels.
The 50 Simple Moving Average (SMA) provides immediate support to Polkadot. However, as overhead pressure mounts, the crypto’s downward potential gains traction, jeopardizing the short-term support.
DOT/USD Daily Chart
At the same time, the reduced volatility implies bullish efforts would continue to be limited in the coming few days. Therefore, volatility must be created to boost the price upward. In other words, if Polkadot drops from the current level to the region between $25 and $30, it is bound to attract more investors from the sidelines.
It is implausible that Polkadot will extend the bearish leg below the demand zone in green. Hence, at this position, the only way would be up. With increased volatility and a stronger bullish front, traders can expect DOT to explode above $40 and possibly close the gap to $50.